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Shares of WuXi AppTech experienced an uptick following the company’s upward revision of its annual earnings outlook for the second time this year, buoyed by a strong third-quarter performance.
As of 2:20 p.m. in Shanghai today, WuXi AppTec traded 2.2 percent higher at CNY106.06 (about USD14.91). Its Hong Kong-listed shares also saw a 3.9 percent increase, rising to HKD114.80 (approximately USD14.78).
The company projects revenue to grow approximately 17 to 18 percent, reaching between CNY43.5 billion and CNY44 billion (USD6.1 billion to USD6.2 billion) this year, according to its third-quarter financial report released yesterday.
Back in March, WuXi AppTech had forecasted its revenue would increase by 10 to 15 percent, aiming for CNY41.5 billion to CNY43 billion for 2025 compared to the prior year. In July, the forecast was raised to anticipate an increase of 13 to 17 percent, with revenue potentially hitting CNY43.5 billion.
The company’s net profit for the three months ending September 30 surged 53 percent year-over-year, reaching CNY3.5 billion (USD492.1 million). Revenue for the quarter grew 15 percent to CNY12.1 billion.
In the first nine months of the year, WuXi AppTech’s net profit expanded dramatically by 85 percent to CNY12.1 billion, while revenue rose 19 percent to CNY32.9 billion compared to the same period last year.
The firm continues to strengthen its contract research, development, and manufacturing operations, which contributed to steady revenue growth. It also improved overall profitability by streamlining production processes and enhancing operational efficiencies.
A notable factor supporting the company’s faster-than-expected earnings growth was the sale of part of its stake in a joint venture.
On October 9, WuXi AppTech announced it had sold some shares of WuXi XDX, a joint venture with WuXi Biologics, on the secondary market. This sale is expected to generate net investment gains adding up to CNY4.4 billion in net profit for fiscal year 2025.
Initially a subsidiary of WuXi AppTec, WuXi Biologics became a standalone company listed in Hong Kong, with no remaining equity ties to WuXi AppTech.
Additionally, WuXi AppTech disclosed plans to sell two subsidiaries—WuXi Clinical Development Services Shanghai and WuXi MedKey Med-Tech Development Shanghai—to private equity firm Hillhouse Investment Management for CNY2.8 billion.
The company stated, “This transaction aligns with our long-term strategy to concentrate on our core CRDMO business—covering drug discovery, lab testing, process development, and manufacturing services. We believe this move will strengthen our financial position and enable us to expand our global capabilities, ultimately better serving customers and benefiting patients worldwide.”
In the first three quarters, WuXi Clinical and WuXi MedKey contributed 0.7 percent to WuXi AppTec’s net profit and 3.5 percent to its revenue.
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